Dublin, Jan. 20, 2026 (GLOBE NEWSWIRE) -- The "Indonesia Renewable Energy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The Indonesia Renewable Energy market is poised for significant growth, with projections indicating a rise from 15.97 gigawatts in 2025 to 18.4 gigawatts by 2026, and further to 37.32 gigawatts by 2031, marking a CAGR of 15.20% over the 2026-2031 period. Several factors drive this growth, including strong policy support, declining technology costs, and increased corporate demand, as the Indonesian government seeks to balance climate objectives with economic expansion. A notable move by President Prabowo Subianto in January 2025 involved the inauguration of 37 electricity projects valued at IDR 72 trillion (USD 4.4 billion), demonstrating state backing for both grid improvements and new capacity.
Hydropower continues to dominate the energy mix; however, the solar photovoltaic (PV) segment is experiencing the fastest growth as project economics become increasingly favorable and independent power producers diversify their portfolios. Climate-finance inflows, highlighted by the USD 20 billion Just Energy Transition Partnership, are easing capital constraints. Nonetheless, challenges such as coal over-capacity and PLN's single-buyer model persistently hinder private investment.
Indonesia Renewable Energy Market Trends and Insights
- Falling Solar & Wind LCOE:The global average cost of solar and onshore wind dropped significantly by 2024, pushing past coal benchmarks. Indonesia's relaxation of local-content rules in August 2024 facilitates cheaper module imports while maintaining onshore assembly, accelerating solar project pipelines. This economic shift prompts PLN to focus on generation cost reductions, pivoting the market toward solar and wind for new capacity.
- RUPTL 2025-34 Pipeline:Indonesia's power-supply plans include 69.5 GW of new capacity by 2034, with 76% being renewable or storage-focused, needing a massive investment of IDR 2,967 trillion (USD 182.5 billion). Private partnerships are expected to finance 73% of this new capacity, leading to greater technology diversity. This strategic roadmap indicates significant solar, wind, and geothermal projects on the horizon, alongside long-term plans for nuclear power to provide baseload low-carbon supply.
- Coal Over-Capacity & Must-Run PPAs:Obligatory payments under legacy coal power purchase agreements burden PLN financially, crowding out cheaper renewables despite cost advantages. Constraints due to coal are anticipated to lessen with early-retirement schemes, but the uncertainty of timelines continues to temper growth prospects in the renewable sector.
Additional Dynamics
- JETP & Climate-Finance Inflows
- Mandatory Biofuel Blending
- Comparative High Cost of Capital
Segment Analysis
Hydropower held a 47.7% market share in 2025, while wind capacity is expected to experience a 55.95% CAGR from 2026 to 2031. Solar installations are growing rapidly, supported by battery systems that qualify for capacity payments. Wind's rise is influenced by stronger capacity factors and joint-venture financing. The geothermal segment adds consistent capacity annually, albeit constrained by high initial costs. Meanwhile, bioenergy growth aligns with blending mandates, and ocean energy remains in pilot stages.
The market report segments by technology (Solar Energy, Wind Energy, Hydropower, Bioenergy, Geothermal, Ocean Energy) and end-user (Utilities, Commercial, and Residential). Market sizes and forecasts are provided in installed capacity terms (GW).
Companies Covered in the Report
- PLN Renewables
- Pertamina Geothermal Energy
- Star Energy Geothermal
- Medco Power Indonesia
- Canadian Solar Inc.
- Trina Solar Ltd
- PT Sumber Energi Sukses Makmur
- PT Barito Renewables Energy Tbk
- SEG Solar
- PT ATW Solar Indonesia
- Fourth Partner Energy Pvt Ltd
- Xurya Daya Indonesia
- TotalEnergies ENEOS
- ACWA Power
- Masdar
- Northstar PLTS
- Bright PLN Batam
- PT Supreme Energy
- PT Geo Dipa Energi
- PT Sarulla Operations
Key Topics Covered
1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porters Five Forces
4.8 PESTLE Analysis
5 Market Size & Growth Forecasts
5.1 By Technology
5.2 By End-User
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles
7 Market Opportunities & Future Outlook
7.1 White-space & Unmet-Need Assessment
For more information about this report visit https://www.researchandmarkets.com/r/aibla2
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